Agenda item - Cabinet Members' Items - Report of the Finance and Corporate Resources Portfolio Holder - A.4 - Latest Financial Forecast / Final Budget Proposals for 2020/21

To seek Cabinet’s approval of the latest financial forecast and final General Fund budget proposals 2020/21 (including Council Tax proposals) for recommendation to Council on 11 February 2020.

RESOLVED that Cabinet approves:-

(a) the latest financial forecast set out in Appendix A;

(b) that if the financial position changes prior to Council considering the budget on 11 February 2019, delegation be given to the Chief Executive to adjust the forecast / budget, including the use of Reserves, in consultation with the Corporate Finance and Governance Portfolio Holder;

(c) that in consultation with the Leader of the Council and the Corporate Finance and Governance Portfolio Holder, the Chief Executive reports directly to Council in respect of the formal draft resolutions necessary to implement the Cabinet’s budget proposals along with any late information or notifications received from the Ministry for Housing, Communities and Local Government etc.;

(d) that the Resources and Services Overview and Scrutiny Committee be thanked for the work they have undertaken, and continue to undertake, in supporting the development of the forecast / budget and agrees the comments of the Corporate Finance and Governance Portfolio Holder in response to those of the Committee as set out in this report;

(e) that in respect of the Treasury Strategy 2020/21, delegation be given to the Portfolio Holder for Corporate Finance and Governance to approve the Strategy for consultation with the Resources and Services Overview and Scrutiny Committee.

RECOMMENDED TO COUNCIL that, following the consideration of the comments from the Resources and Services Overview and Scrutiny Committee the following, final, budget proposals be made (based on a £5 increase in a Band D Council Tax for district services):-

(a) that the detailed budgets as per Appendix D of this report be approved which provide for a Council Tax Requirement for 2020/21 of £8.354m (excluding parish precepts);

(b) that the Council agrees and formally approves:

(i) the specific recommendations, calculations and other matters in respect

of the Council’s requirements – Appendix F; and

(ii) the Council Tax for this Council’s services – Appendix I.

Earlier in the meeting Councillors Allen, Bush, Chapman, I J Henderson, McWilliams, Stock, Talbot and Wiggins had each declared a personal interest in respect of this item insofar as they were all elected members of a parish or town council within the District and insofar as the report referred to this Council’s local council tax subsidy grant to parish/town councils.

The Cabinet gave consideration to a comprehensive report of the Corporate Finance and Governance Portfolio Holder (A.4) which sought its approval of the latest financial forecast and final General Fund budget proposals for 2020/21 (including Council Tax proposals) for onward recommendation to full Council on 11 February 2020.

It was reported that, since the Cabinet’s last meeting held on 20 December 2019, additional changes had been required to the Financial Forecast, primarily as a result of new, or revised, information becoming available which included the Government’s

Financial Settlement announcements. Those required changes had resulted in a surplus for 2020/21 of £0.461m, a change of £0.484m compared to the £0.023m deficit presented to Cabinet in December 2019. The updated forecast had now been translated into detailed estimates which were set out in Appendix D to the Report of the Corporate Finance and Governance Portfolio Holder.

Cabinet was made aware that this figure might change as further adjustments might be required as part of finalising the budget for presenting to Council on 11 February 2020, with a delegation included in the Portfolio Holder’s recommendations to reflect this.

Cabinet was informed that the forecast surplus of £0.461m in 2020/21 had been contributed to the Forecast Risk Fund in accordance with the long-term forecast principles.

Cabinet was advised that taking all of the changes into account, the Council Tax requirement was £8.354m, which was based on a £5 increase for this Council’s services in 2020/21 with a Band D council tax of £172.64.

Members were made aware that in line with legislative requirements the Council’s Section 151 Officer had confirmed the robustness of the estimates along with the adequacy of reserves.

It was reported that although Prudential Indicators were set out in the report, the approval of the associated Treasury Strategy for 2020/21 for consultation with the Resources and Services Overview and Scrutiny Committee was recommended to be delegated to the Portfolio Holder for Corporate Finance and Governance. This repeated the approach taken the preceding year.

Cabinet was aware that, in accordance with the Constitution, the Resources and Services Overview and Scrutiny Committee had been consulted on the Updated Financial Forecast. That Committee had met on 16 December 2019 and 6 and 8 January 2020 and its comments back to Cabinet were set out in the Corporate Finance and Governance Portfolio Holder’s report together with his responses thereto.

Having considered the information in the report and in order to allow the financial forecast and final General Fund budget proposals for 2020/21 to go forward to full Council in accordance with the requirements of the Council’s Constitution and legislation:

It was moved by Councillor Stock OBE, seconded by Councillor McWilliams and:-